Why is capital formation important in economic growth, Microeconomics

Assignment Help:

Capital make large scale production and greater degree of specialization possible. Thus with capital accumulation the advantages of large scale production and specializations are obtained. The advantage of large scale production and specialization is that they greatly increase output and productivity and there by brig done the cost of production per unit. Without adequate capital accumulation neither the scale of production can be neither increased nor greater specialization and division of labour in the production process is possible. Hence capital accumulation by increasing the scale of production and specialization increases the production and productivity in the economy and thereby promotes economy’s growth.


Related Discussions:- Why is capital formation important in economic growth

Curves, how to map the curves

how to map the curves

Productivity side of indian industries, Is indian companies running arisk b...

Is indian companies running arisk by not giving attention to cost cutting

Tax policy implementation, Tax Policy Implementation:   Take, e.g., the...

Tax Policy Implementation:   Take, e.g., the case of tax policy. It attempted to raise resources by a combination of direct and indirect taxes to finance a large part of increa

Available resources with the desired goals, Available resources with the de...

Available resources with the desired goals: To match the available resources with the desired goals: The complementary nature of some investment decisions make for planning. T

Theories of common property resource management, Normal 0 false...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Supply, concept of supply and the factors that affect the supply

concept of supply and the factors that affect the supply

Strategies and policies for administrative reforms, STRATEGIES AND POLICIES...

STRATEGIES AND POLICIES FOR ADMINISTRATIVE REFORMS: As stated in a United Nation's Publication, following strategies and policies are necessary to bring about administrative i

Indirect utility functions, Indirect Utility Functions: Let qi denotes...

Indirect Utility Functions: Let qi denotes commodity i and pi is the price of that commodity. Let y denotes money income of the consumer. Suppose vi = pi/y. The budget constra

Policies for social infrastructure development, POLICIES FOR SOCIAL  INFRA...

POLICIES FOR SOCIAL  INFRASTRUCTURE DEVELOPMENT: The origin of official policies for social infrastructure development is the National Policy of Education, 1986 for the develo

Profit, Profit: This is surplus left over after a company sells its output ...

Profit: This is surplus left over after a company sells its output and pays off cost of production (which includes raw materials, labour costs and a proportional share of its capit

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd